Financial functions are used for various financial calculations involving interest rates, loan terms, present values, and future values. Financial functions are essential for performing in-depth financial analysis of purchases, investments, and cash flow.
The DDB function calculates depreciation using the double declining balance method, which accelerates the rate of depreciation early in the life of an asset. When the asset's book value depreciates to the salvage value, depreciation stops.
The basic format for the DDB function looks like this:
Enter values (cell references or constant values) for the initial cost, the salvage value, the life of the asset, and the period for which ...